Daily Chart Art – January 17, 2013

USD/JPY: 1-hour

USD/JPY 1-hour Chart

Are you part of the camp that thinks that the USD/JPY is coming to an end? Here’s a setup that can help you find a entry for a short setup! After topping out around 89.50, USD/JPY looks like it could be in for a reversal. The pair has tested below the 88.00, but has retraced slightly and is currently finding resistance at the 50.0% Fib level. With Stochastic now deep in overbought territory, we might just see sellers jump in! If you wanna stay on the safe side, you can wait for Stochastic to crossover or for more candlestick confirmation before loading up on any shorts!

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

Is Pip Surfer in town? Cause it looks like Guppy’s channeling lower, baby! GBP/JPY is now approaching the top of the falling channel, which just happens to coincide with the 142.00 psychological level. I suggest waiting for a solid test of the resistance area, as well for Stochastic to exit overbought conditions before putting in your sell orders.

USD/CAD: Daily

USD/CAD Daily Chart

Lastly, here’s a look at what I call the J-LO! Just take a look at that double bottom forming on the daily chart of USD/CAD! With some bullish divergence forming, this could be a solid time to join the bull bandwagon. If you remain unconvinced, you could wait for a bullish candle to close above the .9900 handle as more confirmation that the bulls are back in control.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.